Rule 2a of service tax rule

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2014 Dear Sir,

Please suggest me. I charged service tax on work contract @ 4.944% from my client and I received a bill of job work done on site of Rs .12,00,000/- with service tax approx. 1,32,000/-. My query is that can I get the Cenvat Credit of Job work Invoice for payment of service tax.

Looking forward a positive response at your end.

Regrads
Deepak Sharma

TARUN ARORA

TARUN ARORA (Expert)
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20 July 2014 Dear Mr. Deepak,

You can take input credit of Service Tax paid to job worker.

There no restriction for the same in Cenvat Credit Rules or Service Tax (determination of value) rules.

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2014 Thanks Tarun sir,

But Iam covered under composition scheme. Rule 2A of Service Tax (Determination of Value) Rules, 2006 prohibit cenvat credit on Input. Can we get the benefit of cenvat credit of Job work under Input service. If yes then could you please provide me any case law regarding the same.

Thanks
Deepak Sharma

Querist : Anonymous

Querist : Anonymous (Querist)

TARUN ARORA

TARUN ARORA (Expert)
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21 July 2014 There are three types of Cenvat Credits

a) On Capital Goods
b) On Inputs
c) On Input Services

Explanation 2 to rule 2A has clearly mentioned that Cenvat of Input is not available hence the input of Capital Goods and Input Services is available. There is no ambiguity in this hence no need for any case law.

TARUN ARORA

TARUN ARORA (Expert)
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